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2021 (5) TMI 299 - AT - Income TaxEstimation of income - Bogus purchases - CIT(A) restricting the addition to the extent of 12.5% - HELD THAT:- CIT(Appeals) has decided the matter of controversy on the basis of the decision of Gujarat High Court in the case of CIT vs. Simit P. Sheth [2013 (10) TMI 1028 - GUJARAT HIGH COURT] and on the basis of the decision in case of Ratnagiri Steels [2017 (4) TMI 402 - ITAT MUMBAI]. The CIT(A) has restricted the addition to the extent of 12.5% on the basis of the gross profit (G.P.) of the Assessee under year consideration shown in the regular books of accounts. Thus finding of the CIT(A) has decided the matter of controversy judiciously and correctly which is not liable to be interfere with - Decided against revenue. Disallowance u/s 14A r.w.r. 8D - assessee has voluntarily disallowed the expenses to earn the exempt income - HELD THAT:- In this year the exempt income has been shown by assessee nil. Anyhow, voluntarily offered and assessed by CIT(A) seems justifiable which is not even challenged by assessee, hence, we find it justifiable to restrict the addition to the extent of ₹ 2,17,682/-. No illegality and infirmity found, therefore, we are of the view that the CIT(A) has decided the matter of controversy judiciously and correctly which is not liable to be interfere with at this appellate stage. Accordingly, this issue is decided in favour of the assessee against the revenue.
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